Record job losses reflected the economic downturn as heavy industrial players’ along with SMEs’ order books waned

The labor market, -0.6% job creations in 2008, reflected the impact of the beginning of the global recession as Q4 recorded the strongest job cuts following the financial crisis initiated in the USA in September, and spreading worldwide. France’s services sector remained a niche while the manufacturing and industry groups mirrored the economic downturn with significant job losses and for the second consecutive year. Unemployment figures worsened in December as an estimated 45 800 jobless registered at national Job Centers taking 2008 to the strongest increase of unemployed in the last 15 years, + 215 000 jobless. In 2008, FRANCE counted a total 2 114 300 million unemployed. In addition, white collar job offers were projected to plunge -20% in 2009 according to Apec, the national unemployment agency for white collars and managers.

In Q4, non merchant sectors recorded a total 117 300 job losses, as order books declined along the quarter and reached abysmal levels by the end of the year : the industrial group shed 0.8% workforce and 2% in one year, the manufacturing industry (Consumer goods, Automobile industry, Capital Goods and Intermediate goods) 2.4% and 1.1% respectively impacted by a series of lay-offs, and, redundancy plans, in addition to a lack of consumer demand due to deteriorating consumer confidence. 

The services sector  -0.7% job losses on each period stayed dismal while the construction sector remained the only group on a positive trend with -0.8% job losses in Q4 but +0.9% in one year along with education, health, and non public administration occupations +2%. The services group recorded more job creations than any other sector due to services to individuals, a niche market made more affordable by fiscal measures allowing for tax deductions on activities dedicated to home services (ironing, house cleaning, baby sitting, gardening, home repairs, PC repair services, etc). Jobs rose +3.9% in one year and +0.9% compared with the previous quarter, but offered little career prospects due to low pay and fragmented time tables.

The Services to Companies sector by comparison saw -3.1% job losses in one year and -2.3% compared with the previous quarter with temporary employment impacted the most, -21.2% in one year and -13.2% in the last quarter due to the economic downturn. Consultancy activities rose +2.6% and fell -0.1% on the same periods.

The Food and Agriculture Industry sector did not quite reflect the downturn: in one year, jobs declined -0.6% but rose +0.5% compared with the previous quarter. The Consumer Goods sector by comparison recorded a dire performance, -3.4% jobs in one year and -1.8% in Q4 impacted by all branches as each consumer demand and order books declined massively along the quarter (leather and clothing shed 6.2% workforce in one year and 3% in Q4, household equipment -5.5% and -2% respectively, book printing and reprints -2.9% and -1.5%, perfumes, personal care products -0.3% and -1.3%)

The Automobile Industry recorded the worst car market collapse ever experienced in Q4 since the beginning of the crisis, with new passenger car registrations decreasing by 7.4% and double fold in Europe -14.5% (-17.8% in one year in Europe). Job losses accounted for 4.9% of total workforce employed in that sector in one year and -0.7% compared with the previous quarter as production freezes and early retirement plans offset bigger lay-offs.

The Intermediate Goods sector, heavily dependent on the auto industry due to components associated with car manufacturing, did not fare better, as jobs fell -2.8% in one year and -1.4% in Q4. Similarly to heavy industrial players, that sector was also faced with credit freeze in addition to near to non existent order books.

In addition, the Capital Goods sector and Construction weakened Intermediate Goods capacity to recover due to their own deteriorating context as major elements (metal and metal transformation, along with electric and electronic components and equipments) stayed in want of orders: however, jobs decreased by -0.1% in one year in the Capital Goods group and -0.4% in Q4, while the Construction sector gained a modest +0.9% jobs in one year and -0.8% in the last quarter.

The Transport sector did not quite benefit from oil products price declines for reasons associated with a lack of each internal and external demand: job creations fell -0.3% in Q4 and rose a modest +0.4% in one year.